Jackson Financial reports record adjusted operating earnings on annuity growth
Adjusted operating earnings rose to a record $513 million in the second quarter.
Jackson Financial (JXN), the retirement and investment solutions provider, reported record adjusted operating earnings of $513 million, or $7.30 a share, for the second quarter.
The result marks a significant increase from the $350 million reported in the second quarter of 2024 and the $361 million recorded in the first quarter of 2025. Net income attributable to common shareholders rose to $644 million, or $9.16 a share, reversing a net loss of $435 million in the prior quarter.
Growth was driven by a 34% year-over-year increase in retail annuity sales, which reached $5.9 billion. This growth accelerated from the 31% increase seen in the first quarter. Registered Index-Linked Annuity (RILA) sales reached a record $2.3 billion, up 69% year-over-year.
Variable annuity sales grew 8% year-over-year to $2.7 billion, reversing a 6% decline in the first quarter. Fixed and fixed index annuity sales rose 73% year-over-year to $812 million, though this represented a deceleration from the 335% growth reported in the first quarter.
In its institutional business, pretax adjusted operating earnings for Institutional Products rose to $29 million from $19 million in the second quarter of 2024, as sales increased to $1.4 billion. Conversely, the Closed Life and Annuity Blocks segment reported a pretax adjusted operating loss of $10 million, compared to a $22 million profit in the same period last year.
Assets under management for PPM grew 21% year-over-year to $101.1 billion, up from 18% growth in the first quarter. The company's estimated risk-based capital ratio at JNL declined to 538% from 554% in the prior quarter.
Jackson Financial returned $290 million to common shareholders during the quarter, a 34% increase year-over-year. Holding company cash and highly liquid securities rose to nearly $1.4 billion as of June 30, compared to nearly $650 million as of March 31.
The company issued $750 million in senior debt during the quarter to potentially retire $400 million in senior notes and $250 million in surplus notes due in 2027.
Jackson Financial announced a leadership transition effective October 1, 2025, in which Don Cummings will succeed Laura Prieskorn as President and CEO, and Brian Walta will succeed Cummings as CFO.